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Ethereum is a decentralised software platform

The main difference between Bitcoin and Ethereum is that Bitcoin is a decentralised digital currency and Ethereum is an open software platform that enables developers to build and deploy applications.

Ethereum’s CEO, Vitalik Buterin, a 23-year-old Russian-born Canadian, explained further in an interview with Cointelegraph:

“..Bitcoin and Ethereum are doing different things. Bitcoin is a digital currency, and the protocol is written to sustain this cryptocurrency. Clearly, Ethereum platform has ETH, it is also a digital currency, but it exists to sustain the protocol. The protocol was written for a vast amount of applications, both in the area of payments and going far beyond payments.”

The platform allows developers to create apps, with no possibility of downtime, fraud, censorship or middleman interference.

Imagine buying a house. It is a long, expensive and complicated process that normally involves solicitors and agents. With a contract built on the blockchain, you could automatically transfer the equity to the buyer and the funds to the seller, saving a lot of time and money.

A new internet

Although theoretically, the internet is already a decentralized network that no one owns, in practice, a few ginormous companies control or mediate much of it. Ethereum could bring a whole new wave of unprecedented freedom and change, maybe even a new internet.

With Ethereum you can have a decentralized identity management system that cuts out intermediaries like Facebook, Twitter, Instagram and even Google. Peer to peer apps like uPort, can enable users to have complete control of their personal data, censorship and eliminate any risk of getting hacked.

The possibilities for the applications of this technology are truly endless. Ethereum based lending platforms and decentralised crowdfunding platforms are also at the forefront. Ethereum itself was funded through a crowdsale when it was launched back in July 2015.

Smart Contracts on the Ethereum Blockchain

The Ethereum community has set certain standards regarding the functionality of smart contracts, including tokens. ERC-20 is the universal set of rules that all tokens on the Ethereum network use. It allows one token to be traded with another.

Because ERC-20 tokens are designed exclusively for the Ethereum platform, they enjoy special attention from developers.

Disclaimer: This information should not be interpreted as investment or trading advice. Bitcoin and other cryptocurrencies can be extremely volatile and you should always do your due diligence and research on the product, service and legal and regulatory requirements before deciding to invest. We do not take any responsibility for any possible losses you may incur.